The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-08-17

Some PeCuiiarities in Banking-CautiOn
Exercised in Opening New Accounts
Crossed Check-OId Firms and
Their Numerous Branches.
To the American the methods of con
Quoting business in London seem slow and
antiuuated There is an evident desire on
the part Of many large firms to make the
transaction of business difficult instead OF
easy. There is an outer Inquiry office, at
which you must give your name to clerk,
who often intimateS by his looks that he
is comforting q favor by talSng it; the
name is passed on to an inner office and
you are probably told to take a seat in
reception room until the principals are at
liberty TO see you. All this contrasts
strongly with the accessibility of business
men in America.
The greatest caution is exercised in the
opening of new accounts. Before you can
buy goods you must first either be intro
duced by an old customer or establish
your responsibility and sOlvency. If you
step into a large bank in London and put
your money on the counter and ask to buy
a draft on New York, Berlin or Paris you
will be told that they do not know you
and can only sell drafts to their regular
customers OF to people introduced by
them. There is no question that the
money you offer is not good, but they do
not know you.
STILL \ STRANGER.
| was once. years ago, refused a draft
in a bank in which l had a special deposit
of money at interest, and, nOtwithstand-
inc | brought the clerk from the special
deposit department Of the bank to vouch
for my identity, the draft clerk told me:
''Ah. yes! you have a special deposit in
that department, but special deposits are
ton. ard really, since you have never
been introduced TO the bank, you are still
i'm the position of a stranger to us, and
we cannot sell you the draft. $"
Another banking custom that seems,
strange to US is that open checks mot
''crossed') are paid to strangers without
Identification. If You have a check pay
able TO John Jones' or order, the bank
does not require that you be identified as
John Jones, but you present the check,
indOrse your name John Jones on the
back and receive the money in bills or gold.
But most checks are crossed and not
''Open checks" and You cannot get the
payment of crossed check by present
ing it personally at the bank, no matter
how much you may be identified. To
cross" a check you draw two parallel
lines across the face of it, and write be-
tween them either the name of the bank
with whom the person to whom the check
is PAYABLE intends to deposit it, or simply
the terminal words ''& Coz any check so
crossed" must be deposited in a bank for
collection and presented by a bank mes
senger for payment. This crossing of
checks thus forms an almost absolute
safeguard against payment to the wrong
persons. 1t might be adopted with adj
vantage in other countries.
WITH \ DOZEN BRANCHES.
Some of the London banks have de
posts of 100000, 900 and $3.50 600 900,
but this is the total of deposits of the main
bank in the Getty Of London of its
dozen or more of branches in Charger
London, " and its thirty or forty country
branches, so that 20 compare the deposits
of the largest London banks with those of
the largest New York banks would hardly
be fair unless you added to the deposits
of the New York banks the deposits OF
all their correspondent banks
The principal of subsidiary branches is
carried through many other businesses.
Some of the clothing and furnishing
houses, the grOcers and provision dealers,
tea merchants, fruit stores, dyers and
cleaners. restaurants, booksellers and sta
TONERS have from six to twenty branch
establishments. Oftentimes you find two
or three shops on the same street belong
ing to the same firm. 1t is said that
shop on any Of the main thoroughfares in
London can afford to cheat every Gus
toner. because the crowd Of strangers
passing the door VIII continue to furnish
new victims year after year. It may be
that experience proves that when the
number Of people passing is SO great that
the opening of one or two new shops IN
the same street by the same firm does not
affect the business of the old house. But
many old firms cling to the old and often
dingy premises long after they have out
grown them. Age in London is the great
badge of respectability. 'Old estab-
lished, - Business established over fifty
years, - or zone hundred years, - is seen
in shop fronts almost as often as To the
Queen" ''Patronized ~ the Royal Fam
lily" For this reason you find some of
the largest firms in the city in the little
alleys, lanes or courts, where they first
started.-Loudor Cor. Philadelphia Times.